Brent @ 140
While we are were busy with our trading life’s, Brent played possum from Jun 2009 till Nov 2010, around 18 months (oscillating around 70 to 80) and just in 90 trading days is ready to retest previous highs near 140.
Why this can happen? First an 18 month sideways action can easily lead to a 6 or 9 month upside. Second, Elliott 3 waves are the strongest and generally the longest. The ongoing wave structure suggests continued upside till 140. Third, Previous resistances should now be supports. The psychological 100 resistances we were looking at should become supports now.
Fourth, the previous uptrend took Oil from Dec 2008 low to 80 in Feb 2010. This was a fifty dollar upmove. A minimum target projection can take oil from 70 (May 2010 low) to 120. And 120 puts the all time high on Oil in reach. This is when we are expecting worrying equity to bottom and Oil to take a pause. Brent at 140 is plausible.
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This article is written for ATMA
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